In a significant consolidation in India’s logistics industry, Delhivery Ltd has signed an agreement to acquire its major rival, Ecom Express Limited, for a total consideration of not more than ₹1,407 crore. The transaction, one of the biggest deals in India’s logistics industry, is likely to be completed within six months of the signing of the Share Purchase Agreement (SPA), subject to regulatory approvals and conditions.

The Gurugram-based Delhivery announced the development in a regulatory filing on April 5, that the board has authorized the completion of the SPA and other transaction documents with Ecom Express and its shareholders. Ecom Express will be a wholly owned subsidiary of Delhivery upon completion.

Strategic Integration to Strengthen Delivery Network
Sahil Barua, CEO and Managing Director of Delhivery, pointed out that the acquisition will help the company develop service capabilities, streamline infrastructure and strengthen customer connections in India’s growing e-commerce ecosystem.

“We believe this acquisition will allow us to serve customers of both businesses better, through continued aggressive investments in infrastructure, technology, network, and people,” Barua said.

He also added that the integration will enable Delhivery to consolidate its presence in Tier II and III cities, where Ecom Express has established strong last-mile capabilities.

Ecom Express Founder Supports Synergy in Growth
K. Satyanarayana, co-founder of Ecom Express, saw the deal as a strategic victory for the logistics sector. “With this acquisition and accompanying synergies, Indian businesses as well as the logistics industry at large will gain significantly through the merger of two like-mind players,” he said.

Established in 2012, Ecom Express has played a key role in parcel logistics, including e-commerce parcel delivery. Its large delivery network and close customer ties will now find a home under Delhivery’s more extensive logistics roof.

Background: Tensions Over Shipment Reporting
The takeover comes after months of competitive tension between the two logistics majors. In September 2024, Delhivery had accused misrepresentation of shipment numbers by Ecom Express in the latter’s draft red herring prospectus (DRHP).

Delhivery contended that its own shipment reporting counts even returned shipments as a single unit, whereas Ecom Express had allegedly counted them as two different deliveries—once for the forward shipment and once for the return-to-origin, exaggerating volume numbers.

In addition, Delhivery highlighted differences in weight of shipments and customer concentration. It asserted that its average weight per package is close to twice the size of Ecom Express as a result of having a wider and more diversified customer base. While Ecom Express’ largest customer contributed to 52% of its revenue, Delhivery had a much lower concentration at 16%, reflecting a more diversified and cushioned client book.

“Per shipment metrics significantly differ based on shipment profile. Peer has Top customer concentration of 52% of revenue (compared to 16% for Delhivery) leading to Delhivery’s average weight per parcel being ~2x of the peer,” the company had mentioned in an earlier filing.

Industry Impact: Consolidation Amid Logistics Tech Boom
This deal represents a major page in India’s fast-changing logistics industry, spurred by the rise of e-commerce, same-day delivery business models, and increasing demand for end-to-end tech-enabled supply chains.

Delhivery’s decision not only dispenses with an immediate competitor but also gives the company a competitive edge in optimizing costs, timelines for delivery, and pan-India reach. Having delivered over a billion packages since its birth and having extensive reach in express parcel, heavyweight freight, international cross-border, and warehousing solutions, Delhivery is well on the way to emerge as India’s top full-stack logistics company.

Analysts are of the view that Ecom Express acquisition will enable Delhivery to increase its customer base and grow operations, especially in under-penetrated areas, and thus deliver value to shareholders as well as clients.

What’s Next?
The transaction is expected to be completed within the next six months subject to extension by mutual agreement. As Ecom Express becomes a Delhivery subsidiary, integration activities will center on converging technology platforms, consolidating delivery networks, and streamlining cost structures.

This acquisition aligns with Delhivery’s long-term vision to build a “logistics operating system for India,” enabling businesses of all sizes to manage their supply chains efficiently.